You can’t do better than what Warren Buffett said to the people at Salomon Brothers many years ago: “If you lose money for us, we will be forgiving. If you lose reputation for us, we will be ruthless.” You make the situation clear by stating your intentions and you back them up in the design of your compensation program. If there’s any suggestion of bad behavior, the money goes back to the company. That’s the only fair and credible way. Any CEO who won’t come in on that basis is somebody you don’t want to bet on because he is not willing to bet on himself.
Content: Quotation
Author: Nell Minow
Source: strategy+business
Subjects: Compensation, Corporate Governance, Human Resources
Author: Nell Minow
Source: strategy+business
Subjects: Compensation, Corporate Governance, Human Resources
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